The euro rose in European trading on Wednesday against a basket of global currencies, resuming gains that had briefly paused yesterday against the US dollar, and moving higher toward a one-week high as the US currency weakened ahead of key US inflation data.

The single European currency was also supported by falling global oil prices after a Wall Street Journal report indicated that the International Energy Agency is considering the largest release of oil reserves in its history.

Price Overview

Euro exchange rate today: the euro rose more than 0.2% against the US dollar to $1.1636, up from the opening level of $1.1611, and recorded a low of $1.1603.

The euro closed Tuesdays session down 0.2% against the dollar, marking its first loss in the past three days after earlier reaching a one-week high of $1.1667.

US Dollar

The dollar index fell 0.2% on Wednesday, resuming losses that had briefly paused in the previous session and trading near a one-week low, reflecting weakness in the US currency against a basket of major and secondary currencies.

The decline comes as demand for the dollar as a preferred safe-haven asset slows, with growing hopes that the Iran war may soon end following intensified US diplomatic efforts to reach a ceasefire agreement through Russian mediation.

Later today, key US inflation data for February will be released, which could provide strong and decisive signals regarding the likelihood of the Federal Reserve cutting interest rates during the first half of this year.

Global oil prices

Global oil prices fell about 5% on Wednesday after the Wall Street Journal reported Tuesday that the International Energy Agency had proposed the largest release of oil reserves in its history in order to rebalance a market heavily strained by the fallout from the Iran war and the closure of the Strait of Hormuz.

European interest rates

Money markets are currently pricing about a 5% probability that the European Central Bank will cut interest rates by 25 basis points in March.

To reassess these expectations, investors are awaiting further economic data from the eurozone on inflation, unemployment, and wage growth.